Volatility of Ship Demolition Index Prices


  • Bangar Raju Totakura University of Petroleum and Energy Studies, Dehradun. India
  • Vrinda Sharma University of Petroleum and Energy Studies, Dehradun. India
  • Vishal Kashav University of Petroleum and Energy Studies, Dehradun. India
  • Subir Ranjan Das Sharda University, Greater Noida, India




Causality, Volatility, EGARCH, Baltic demolition index


Aim: The main objective of this paper is to explore the volatility of ship demolition indices. Ship demolition indices are becoming increasingly important owing to the growing number of norms and rules imposed by the International Maritime Organization. Financial crunch and stricter emission norms are forcing vessel owners to consider ship demolition options. This study examines the volatility of ship demolition rates of the Baltic Demolition Index and the causal relationship between the Chinese and Indian subcontinent indices.

Methods: EGARCH models have been used to explore the volatility and asymmetric effects in the time series. The relationship between the two indices was established using the Granger causality test.

Results and conclusion: The final analysis confirmed that ship demolition indices are both volatile and asymmetric. This study is unique and useful to ship owners, vessel operators, and banks as it helps them understand the risks involved.




How to Cite

Totakura, B. R., Sharma, V., Kashav, V. . and Das , S. R. . (2021) “Volatility of Ship Demolition Index Prices”, Transactions on Maritime Science. Split, Croatia, 10(2), pp. 488–495. doi: 10.7225/toms.v10.n02.w04.
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